Crypto Laundering a 'Material Risk' for UK Ahead of FATF Review: RUSI
Summary
A RUSI taskforce warns the UK may struggle to demonstrate effective crypto anti-money-laundering enforcement during FATF’s 2027 evaluation. The FCA’s statutory crypto regime begins in October 2027, after assessors are expected to visit in June. The report highlights crypto’s high money-laundering risk, including OTC brokers estimated to launder hundreds of millions of dollars annually, and warns that rules focused on identifiable firms may leave high-risk activity and stablecoins such as USDT beyond the regulator’s reach. A £5.5 billion seizure and international operations show enforcement capacity, but the taskforce says results remain limited and questions whether police and intelligence agencies have sufficient resources.
